David Dixon

By 2026, Asia is predicted to be tied with North America in terms of ultra-high-net-worth-individual (UHNWI) population, as shown in The Wealth Report by Knight Frank, cited in our 10 Year Market Forecast. As more individuals are buying private aircraft in Asia, an increase in the UHNWI population could cause a boost in demand for the region.

Asia’s promising position in the global business aviation industry has never been more evident than at the 2018 Asian Business Aviation Conference & Exhibition (ABACE). OEMs, operators and industry leaders were abuzz with the opportunities that Asia presents, speaking of new infrastructure, a better attitude towards business aviation and a steadily maturing market.

Overtaking Europe

Jetcraft is no exception when it comes to optimism about the region. Backed by our consistently healthy sales, we have determined that Asia-Pacific is one of the world’s fastest growing markets, accounting for approximately 15% of Jetcraft’s transactions in 2017. This trend has continued into Q1 of 2018, setting a positive projection for the rest of the year.

The Asia-Pacific market continues to show signs of business aviation growth, and we are tracking promising activity throughout the region. Jetcraft’s 10 Year Market Forecast predicts Asia-Pacific will remain one of the most active of the emerging markets (and the third-largest business aviation market behind North America and Europe), accounting for 10% of unit deliveries from 2016-2025 (789 units). As we closed 2016, the best year in our company’s 55-year history, Asia-Pacific accounted for approximately 20% of our results, on par with Europe.

One of the key drivers for Asia-Pacific’s business aviation sales activity, from our perspective, is a greater acceptance of pre-owned aircraft among buyers as well as an increase in the number of first-time sellers in the market. It remains a region where buyers are inclined to purchase new aircraft, but there is a significant shift in attitude, where buyers are acquiring pre-owned aircraft in greater numbers and with growing confidenc...

The Asia-Pacific region, though currently tempered somewhat by China’s economic challenges, should not be discounted by the business aviation industry. Where China dominated attention in years past, focus today takes into account growth more broadly, encompassing nations such as the Philippines, Thailand, Indonesia, Malaysia and Singapore.

Today, Asian business leaders and many governments are realizing the benefits that business aircraft can offer in terms of stimulating their economies and contributing to long-term regional growth. Jetcraft’s 10-year Market Outlook report projects that Asia-Pacific will account for 12% of the business aircraft deliveries total worldwide through 2024, representing 1,050 units.

Indeed, this is the time of year when much attention across our industry turns to Asia. Key tradeshows and exhibitions are underway, such as the Singapore Airshow that occurred last month, and the upcoming annual ABACE 2016 event taking place in Shanghai next month.

At a recent conference in London, I presented on the subject of business aviation trends in China titled “China - is it slowing down or overhyped.” For this article, I’m going to start where I ended that presentation, expounding on my closing point of why, “Everyone wants a China strategy but everyone needs a regional strategy”.

Watching China Grow

Fifteen years ago no one took China seriously as a market for business aircraft and almost any efforts were often met with incredulity. Fast forward to today, where China is top of the agenda when thinking strategically about Asia. There is good reason for that too, as it offers enormous potential for growth in almost every industry, including business aviation. Today there are more than 120 privately owned aircraft either based or owned in Hong Kong, as well as approximately another 120 aircraft in mainland China. In dollar value terms, the market...